The second lender can sue on the note or could foreclose but would have to deal with the first mortgage. There are a lot of facts which should be examined because if the foreclosures are not done properly you can avoid a deficiency. Once again I would note that attorneys soliciting people to file bankruptcy is improper. While bankruptcy is an option at times, it should be a last resort after all efforts to deal with debts are explored. The effect of a bankruptcy can scar someones credit for many many years. This forum is not about soliciting business!
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Anyone can sue anyone. The question is whether the suing party will win, and attorneys in this forum are not going to be able to tell you whether you will lose a lawsuit. Contact an attorney.
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The 2nd mortgage company can sue you on the note, and that type suit is becoming common. They do not have to wait on a foreclosure. When they get a judgment they can garnishee your wages and bank accounts.
If you have stopped paying on both loans it would be very smart to see a bankruptcy lawyer. You may be able to discharge both debts. Or you may be able to keep paying on the 1st and strip off the second (you can now do this in some Chapter 7s as well as 13s). If you do not have a lawyer, call me at 404-768-3509.
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